Page 12 - LatAmOil Week 13 2021

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Karoon takes steps to focus on Brazil

AUSTRALIA’S Karoon Energy said in a state- in light of its transition from exploration to pro-
ment earlier this week that it was taking meas- duction following its acquisition of the Baúna
ures to focus on its operations in Brazil, where it oilfield and other assets in Brazil. This shift “calls
is leading the development of Baúna and several for a transformation in the experience and capa-
other offshore oilfields. bilities within the organisation, as well as clear
The Australian firm is setting up a special definition of accountabilities in a streamlined
business unit and restructuring its executive reporting structure,” it explained.
team for this purpose. The new Brazil Busi- Fowles said he welcomed the change, com-
ness Unit will report directly to Julian Fowles, menting: “Karoon has successfully made the
Karoon’s CEO and managing director, and will transition from explorer to producer. It is now
be “supported by the appropriate technical, time to commence our plans to enable Karoon’s
financial and growth expertise in the [compa- near-term growth in the core basins of Southeast
ny’s] Melbourne corporate centre,” it said. Brazil and to formulate our longer-term strat-
A new executive position is being established egy. To do this, we need to enhance and deepen
to facilitate Karoon’s work in Brazil. This will be the oil and gas executive capability within the
accomplished through the expansion of the post organisation and implement rigorous corporate
of South America general manager, held by Tom and operational processes, with clarity on cor-
Hosking until March 31. The position will now porate and individual KPIs [key performance
be known as executive vice-president and presi- indicators], executive accountabilities and
dent Karoon Brazil, the statement said. authorities.”
The first person to assume this role will Karoon finalised its acquisition of a 100%
be Edward Munks, who currently serves as stake in Baúna, a section of the BM-S-40 block
Karoon’s COO. Munks will shoulder this task on in Brazil’s offshore Santos Basin, last November.
an interim basis while the company carries out a Baúna is around 50 km away from Karoon’s
global search to fill the post, the statement noted. Neon and Goiá discoveries and 50 km from its
Karoon said it had undertaken these changes Clorita exploration area. ™

Mubadala Capital acquires RLAM refinery

BRAZIL’S national oil company (NOC) Petro- MC Brazil Downstream Participações with
bras revealed last week that it had agreed to sell support during a transition period in order to
the Landulpho Alves Refinery (RLAM) in Bahia ensure the continuity of operations at the plant.
State to an affiliate of Mubadala Capital (UAE/ It did not disclose the parameters of this support
Abu Dhabi). in its statement, but it noted that the parties had
Petrobras said it had signed a contract with signed a service agreement outlining their plans.
MC Brazil Downstream Participações, a subsid- RLAM, with a throughput capacity of
iary of the Mubadala Capital group. It put the 333,000 barrels per day (bpd), is located in São
value of the contract at $1.65bn and reported Francisco do Conde in Brazil’s northern state
that MC Brazil Downstream Participações was of Bahia. It was the first of eight oil-processing
buying RLAM along with associated infrastruc- plants slated for sale this year under Petrobras’
ture facilities. refinery privatisation programme. As such, the
“As disclosed, the agreement provides for signing of the deal with MC Brazil Downstream
adjustments in the sale value due to variations in Participações represents the end of the NOC’s
working capital, net debt and investments until monopoly over Brazil’s refining industry.
the closing of the transaction,” Petrobras said. It The privatisation campaign also covers the
also noted that the transaction would be “subject Presidente Getúlio Vargas Refinery (REPAR)
to compliance with precedent conditions, such in Paraná State, the Alberto Pasqualini Refin-
as approval by the Administrative Council for ery (REFAP) in Rio Grande do Sul, the Isaac
Economic Defence (CADE).” Sabbá Refinery (REMAN) in Amazonas, the
The NOC did not say exactly when it Shale Industrialization Unit (SIX) in Paraná,
expected to finalise the sale of the refinery to the the Lubrificantes e Derivados de Petróleo do
Mubadala Capital affiliate. It did say, though, Nordeste (LUBNOR) base oils plant in Ceará,
that RLAM and all associated facilities would the Abreu e Lima Refinery (RNEST) in Pernam-
continue to operate normally in the meantime. buco and the Gabriel Passos Refinery (REGAP)
Additionally, it said it had agreed to provide in Minas Gerais. ™

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